As a driver, you’ve probably heard of some car insurance myths from well-meaning friends. But how many are true? Should you really just get the cheapest car insurance? Do you have to pay more in premiums just because your car’s colour is outstanding?
Find out what are some of the top car insurance myths to avoid as we separate fact from fiction. P.S. You could even save some money along the way.
1. The colour of your car affects your insurance premium
Let’s set the record straight on one of the most common – and some say ridiculous – car insurance myths that has been circulating around. No, the colour of your car does not affect the amount of car insurance premiums you have to pay.
Rather than superficial reasons, your car insurance premiums are calculated based on factors such as:
- Age, gender and marital status – The younger you are, the more expensive your premiums. Interestingly, women and married people are also considered safer drivers.
- Driving habits and experience – The more driving experience (and less accidents) you have, the cheaper your premiums are.
- Car age, make and model – It makes sense that the more expensive your car is, the higher it costs to insure it. Older cars up to 10 years are also generally cheaper to insure.
So, want to paint your car a funky red or glitzy gold? Go ahead, buddy. You do you.
2.Cheap car insurance premiums = more money saved
Who doesn’t like scoring a good deal? When it comes to car insurance however, a good deal isn’t getting the cheapest plan that’s available, but getting one that offers you the best value.
There are generally three types of car insurance plans – Third Party Only (TPO), Third Party, Fire and Theft (TPFT) and Comprehensive – and it’s important that you choose the right car insurance that gives you the coverage you need.
For example, if you’re driving a swanky new Mercedes, do you really want to opt for the cheapest TPO plan and risk paying out of pocket when somebody else hits your car? That’s going to be really expensive and could cost you more in the long run compared to a Comprehensive plan, which by the way, is the only plan that covers you and your vehicle during an accident.
3. Drive more to get the most out of your car insurance
Now that you’re paying top premium for your car insurance, you should just drive as much as possible to get the most value out of it. Right?
Wrong! In fact, driving less not only results in a cheaper car insurance premium, but you could also earn additional cash rebates on your premiums.
Case in point: Tiq’s Comprehensive Private Car Insurance plan offers a FREE – yes, free – Drive Less, Save More (DLSM) add-on that gives you up to 30% in cash rebates each year just for driving less. That’s right. If you’re putting your car on the backbench for your long-awaited holiday trip abroad, or simply because of rising petrol costs, or the fact that it just isn’t worth it to drive into the CBD for work every day, here’s your opportunity to save more.
4. You’ll lose your No Claim Discount (NCD) if you get into an accident
Let’s be clear, reporting an accident and making a claim are two different things. Contrary to popular belief, you HAVE to let your insurer know if you get into a car accident or you may end up losing your NCD instead.
Your NCD will remain safe unless you decide to make a claim, or if someone makes one against you and investigations show that you have contributed to the accident. If you want, you can also keep your NCD unscathed even if you make a claim – simply get an NCD protector when you have at least 30% NCD.
For instance, drivers who have remained claims-free the past five years will get a 50% NCD under Tiq’s Private Car Insurance. That’s a hefty discount that any sane driver will fight tooth and nail to keep. By getting the NCD protector in this case, you will retain your 50% NCD even if a claim has been made.
5.Car insurance claims take a long time
Heard of horror stories where your car insurance claims take months and months to be processed? Well, they’re just that – stories.
The claims process is usually quite fast and straightforward as long as you do it properly; make sure you submit your claims to your insurer within the set timeframe – usually within 24 hours of an accident – complete with photos or a copy of the police report, if necessary.
For smaller claims that are pretty straightforward, this could even take as fast as 30 minutes! Under Tiq’s Private Car Insurance, you can enjoy a fast claims approval if you are making an own-damage motor claim under S$5,000, simply by visiting one of Etiqa’s authorised workshops.
6. Your car insurance only covers you in Singapore
Now that land travel between Malaysia is open once again, it’s time to revisit your road trip dreams. Rather than fretting over whether you need to purchase overseas car insurance coverage, take comfort in the fact that your car insurance includes overseas coverage!
That’s right, Tiq’s Private Car Insurance covers you across all of West Malaysia and even Thailand as long as it is within 80km of Malaysia’s borders.
7. Your car warranty will be affected unless you visit your dealer’s workshop
There’s a common misconception that you will lose your car warranty if you service or repair your car at any other workshop than your dealer’s. Perhaps this was true in the past, but warranty restrictions have been removed since 2017 and you are free to visit any workshop regardless of what your car dealer might say.
So rather than splashing out for an add-on that allows you to visit your own workshop, enjoy cheaper premiums by visiting your insurer’s list of authorised workshops. It’s not that bad either; you’ll enjoy 9 months warranty for repairs that are done at any of Tiq’s authorised workshops.
Of course, if you still prefer to visit your own workshop, Tiq’s Private Car Insurance offers you an add-on that gives you the freedom to do so.
8. Car insurance doesn’t cover acts of God
Force majeure – it’s a policyholder’s nightmare where a claim can’t be made if the damage is due to natural disasters or forces beyond our control, otherwise known as acts of God.
While this is a common clause in most insurance policies, some car insurance plans such as Tiq’s Comprehensive Private Car Insurance do offer coverage against unforeseen events like ponding, strikes and riots.
Rather than leaving it to chance thinking that you can’t do anything about it anyway, take control by getting a Comprehensive plan that protects you against damage caused by floods and fallen trees – scenarios that are becoming increasingly frequent in Singapore.
Think long-term and seek value
Don’t get blindsided by car insurance myths only to end up settling for less. Before purchasing a car insurance policy, think about what you need and what the best car insurance plan is for you.
Rather than looking for a policy that offers the cheapest premiums, prioritise value and seek a plan like Tiq’s Private Car Insurance that gives you the coverage you need while being friendly on your pocket.
Information is accurate as at 26 April 2022. This content is for reference only. You should seek advice from a financial adviser before deciding to purchase the policy. If you choose not to seek advice, you should consider if the policy is suitable for you. This advertisement has not been reviewed by the Monetary Authority of Singapore.
Tiq by Etiqa Insurance Pte. Ltd.
A digital insurance channel that embraces changes to provide simple and convenient protection, Tiq’s mission is to make insurance transparent and accessible, inspiring you today to be prepared for life’s surprises and inevitabilities, while empowering you to “Live Unlimited” and take control of your tomorrow.
With a shared vision to change the paradigm of insurance and reshape customer experience, Etiqa created the strong foundation for Tiq. Because life never stops changing, Etiqa never stops progressing. A licensed life and general insurance company registered in the Republic of Singapore and regulated by the Monetary Authority of Singapore, Etiqa is governed by the Insurance Act and has been providing insurance solutions since 1961. It is 69% owned by Maybank, Southeast Asia’s fourth largest banking group, with more than 22 million customers in 20 countries; and 31% owned by Ageas, an international insurance group with 33 million customers across 16 countries.
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